Buying TRNC Property Through a Company: Pros and Cons

Short answer: It is possible to acquire property through a company in Northern Cyprus (TRNC), but it is not a way to bypass the foreign ownership rule. Since the 2024 amendment, a company with even one foreign shareholder is considered foreign; it is subject to Council of Ministers permission and the quantity limits in decree no. 89/2026. A company structure only makes sense for a genuine commercial activity or for the 10 million euro investment route.

This article has been prepared for Turkish citizens and other foreign buyers who think, “if I cannot buy in my own name, I will set up a company and buy through it.” We explain, with sample calculations, when purchasing through a company works, when it creates costs and risks, and why structures set up through a TRNC citizen partner are dangerous. If you are wondering about the general permission process, first take a look at our TRNC Council of Ministers permission guide.

Is it legal to buy property through a company in the TRNC?

Yes, it is legal; immovable property can be purchased in the name of a company established in the TRNC. The determining factor is who owns the company. The Immovable Property Acquisition and Long-Term Lease (Foreigners) Law No. 52/2008 treats companies with a foreign shareholding as a “foreign legal entity.”

Before the amendment passed by Parliament in May 2024, it was known that foreigners made purchases through company or trustee (trust) structures without being caught by the quantity limit. With the amendment, according to information reflected in the press, a company is considered foreign even if the foreign shareholding is only one percent. In other words, even if 99 percent of the company belongs to a TRNC citizen, a single foreign shareholder makes the entire company subject to permission.

As of October 2026, news summaries of decree no. 89/2026 in force also count the limits together for “foreign natural or legal persons”: three apartments or two villas within a residential complex. It is not clear whether the right granted to Turkish citizens for six apartments and three villas is applied in exactly the same way to a company established in Turkey; confirm this with your lawyer before the transaction.

Which company is considered “foreign”?

A company is considered foreign if any of its shareholders is not a TRNC citizen; the fact that the company is registered in the TRNC does not change this. The table below summarizes the four structures we most frequently encounter in practice.

The picture changes in dual citizenship: a shareholder who also has TRNC citizenship does not make the company foreign. In this case, the company being considered local depends on all other shareholders also being TRNC citizens. For details of the personal quantity limit, you can read our article on how many homes foreigners can buy in the TRNC.

Pros and cons of buying through a company

The real advantage of acquiring property through a company arises when the property is part of a commercial activity; for a single holiday home or a few rental apartments, it usually brings cost and complexity. Before making a decision, both sides should be placed clearly side by side.

Pros

• Alignment with commercial activity: If a hotel, student dormitory or rental housing business will be operated, tracking income and expenses on the same balance sheet organizes the accounting.
• Expense deduction: Items such as maintenance, management fees, insurance and depreciation may be taken into account in calculating corporate profit. Clarify the scope with your financial advisor.
• Partnership management: In a joint investment by more than one person, holding interests as shares provides a clearer structure than co-ownership on the title deed.

Cons

• The permission burden does not change: A company with foreign shareholders is also subject to Council of Ministers permission, the one-month registration and application period, and security screening.
• Ongoing cost: Company incorporation, annual fees, accounting and declaration obligations continue even if the company earns nothing.
• Document burden: In the permission file, the company’s incorporation documents, shareholding structure, and the identity and criminal record documents of authorized persons are also examined; the file becomes thicker than a personal application.
• Exit and inheritance: The death or departure of one of the shareholders affects the shares, not the property; if a share transfer brings in a new foreign shareholder, the company’s status is reassessed.

Sample calculation: personally or through a company?

Setting up a company for a single rental apartment is more expensive than buying personally in most scenarios. Let us look at this through a 1+1 apartment worth £150,000 in Long Beach; the figures are approximate values as of October 2026, so please confirm them.

A Turkish citizen buying personally pays 0.5% stamp duty on the contract for their first property, i.e. £750. The title deed transfer fee is known as 6% under the normal tariff (£9,000); under the temporary tariff valid until 5 January 2027, it decreases to 4% (£6,000). If the apartment is rented long term for £700 per month, the annual gross rent is £8,400. If 13% withholding tax is applied to foreign-currency rental income, the tax is £1,092 and the net rent remains approximately £7,308.

If the same apartment is purchased by a TRNC company with foreign shareholders, the stamp duty is the same. However, you must separately find out from the land registry office which transfer fee rate will be applied to the legal entity and whether it can benefit from the reduced tariff. Rental income is included in corporate profit; expenses are deducted, but distribution of profit to the shareholder may be taxed separately. On top of this, the company’s own annual accounting and fee burden is added.

The result of this table is simple: for one or two apartments, the tax advantage of setting up a company largely disappears with the company’s fixed costs. For all tax and fee items, you can read our article on taxes when buying a home in the TRNC.

TRNC citizen partner and trustee risk

Trying to avoid permission through a company established in the name of a TRNC citizen friend or relative is one of the most expensive mistakes. Structures that appear local on paper but whose money and control belong to a foreigner are considered a trustee relationship under the legislation and have been sought to be registered since 2024.

A typical scenario we see in practice is as follows: After buying their sixth apartment, the buyer sets up a company with a TRNC citizen acquaintance for the seventh apartment. The company is 100 percent in the acquaintance’s name, while the buyer thinks they are the beneficiary through a “secret supplementary agreement.” In this structure, three separate risks arise together:

1. Ownership risk: Legally, the owner is the company, and the owner of the company is your acquaintance. In the event of a dispute, divorce, death or attachment, it is very difficult to rely on your secret agreement.
2. Invalidity risk: If unregistered trustee arrangements are detected, there is a possibility that the transaction will be deemed invalid.
3. Fine risk: According to information reflected in the press, fines of between 10 and 20 times the monthly minimum wage are envisaged for irregular sales; in 2024 news reports, much higher upper limits for fines for foreigners violating the law were also discussed.

There is already a legal option for buyers who exceed their acquisition right: a document that does not grant ownership but gives a 10-year right of use. We explained the advantages and limits of this route separately in our article on the TRNC usage certificate. It may seem less profitable than a hidden company structure, but it is legal and does not tie your money to someone else’s name.

Who is the 10 million euro investment route for?

The 10 million euro investment route is not for individuals who want to buy housing; it is designed for companies that will establish a real business in tourism, education, health, industry, agriculture, technology or R&D. According to decree summaries, the amount must be deposited in a bank in the TRNC in the name of the company and used within two years for the investment other than land acquisition. Build-and-sell housing activities are not covered by this scope.

The second corporate model introduced by 89/2026 is the “licensed intermediary investor” structure. According to news summaries, the licence is valid for one year, its fee is twice the monthly gross minimum wage, and the licence holder must take control of at least 10 residences per year at the project stage and transfer them to foreign buyers within two years. This is a framework for professional marketers; it is not a shortcut for someone buying a home for their own use. You can follow the decree text from the Official Gazette archive.

If you are considering a large-scale investment, you can review the options on the project development and investment side on our real estate investments page.

Checklist before buying through a company

Before deciding to buy property through a company, you should have a written and clear answer to each of the questions below. A significant portion of company-based purchase requests received by the Akol Global sales office turn into personal purchases after these questions are discussed.

1. Are all of the company’s shareholders TRNC citizens, or is there even a single foreign shareholder?
2. Is the number of residences to be purchased in the company’s name within the foreign limits in the decree?
3. Has the transfer fee rate to be applied to the legal entity and whether it can benefit from the reduced tariff been confirmed with the land registry office?
4. Is the company’s annual accounting, fee and declaration cost reasonable compared to the expected rental income?
5. Have share transfer, death and departure between shareholders been regulated in the articles of association?
6. Are the company documents and the shareholders’ criminal record documents ready for Council of Ministers permission?

For the current version of the law and the legal framework of acquisition limits, you can also visit our TRNC immovable property law page.

Frequently asked questions

Can a foreigner buy unlimited homes in the TRNC by setting up a company?

No. Since the 2024 amendment, even if the foreign shareholding is only one percent, the company is considered a foreign legal entity and is subject to Council of Ministers permission. In news summaries of decree no. 89/2026, the quantity limits are counted together for foreign natural and legal persons. Setting up a company is not a legal way to exceed the personal quantity limit; confirm this with your lawyer before the transaction.

Can I buy an apartment in the TRNC in the name of my company established in Turkey?

You can, but your company is considered a foreign legal entity and Council of Ministers permission is required. It is not clear in the decree summaries whether the six-apartment right granted to Turkish citizens is applied in exactly the same way to a company established in Turkey. Company documents may need to be apostilled and translated; before preparing the file, ask your lawyer for the current document list.

If I set up a company with a TRNC citizen partner, will permission no longer be required?

If all shareholders of the company are TRNC citizens, the company is considered local and is not subject to permission under the foreigners law. However, if you provide the capital and keep control through a hidden agreement, this structure may be considered a trustee relationship. In addition to the risk of invalidity and fines, there is also the risk of losing your property because you are not the legal owner.

Does buying through a company provide a tax advantage?

In some cases, it does. Rental income is included in corporate profit, and expenses such as maintenance, management and depreciation may be deducted. However, the distribution of profit to shareholders may be taxed separately, and the company’s annual accounting and fee costs are paid every year. For one or two rental apartments, this advantage generally disappears with the costs; do the calculation with concrete figures together with your financial advisor.

Can the 10 million euro investment route be used to buy housing?

No. This route is for companies that will make a real investment in areas such as tourism, education, health, industry, agriculture, technology or R&D. According to decree summaries, the amount must be deposited in a bank in the TRNC in the name of the company and used in line with its purpose within two years. Build-and-sell housing activities are outside the scope.

If you would like to discuss whether buying personally or through a company makes more sense in your situation, contact us via our contact page; let us evaluate your acquisition right and structure options together with your lawyer.

This article is for informational purposes only; it does not replace legal, tax or financial advice. Last updated: October 2026.